NAGA Group Reports 7% Revenue Growth in Q1 2025 Amid Mixed Client Metrics

NAGA Group, the publicly listed company behind the NAGA retail trading app, reported a 7% year-over-year (YoY) revenue increase for the first quarter of 2025, according to unaudited figures released on Thursday, May 22, 2025. The Hamburg-based fintech company saw group revenues climb to €16.4 million in Q1, up from €15.3 million in the same period last year. This growth was primarily attributed to higher commission income, new client onboarding, and increased trading activity, which occurred amidst volatile global markets.

However, the company's quarterly EBITDA stood at €1 million, a decrease from €2 million in Q1 2024. This resulted in a temporary decline in the EBITDA margin to 6% from 13% in the prior-year period. NAGA attributed this decline to a strategic increase in marketing expenditure, which rose by €1.6 million compared to Q1 2024. Octavian Patrascu, CEO of NAGA Group, commented on the company's efforts, stating, "With our quarterly reporting and our monthly updates, we are strengthening our capital market communication and offering the international investor community a high degree of transparency and clarity." He further noted, "As CEO, I have set out to truly create a new NAGA Group and show through action that we are leaving the past behind." This performance represents an improvement following full-year 2024 revenues, which totaled €62.3 million, down from €77.5 million in 2023.

Client metrics for the quarter showed mixed results. The number of newly funded accounts increased by 6.5% to 6,088 in Q1 2025, up from 5,717 in the corresponding period last year. Client lifetime value (CLV) also saw a significant improvement, rising by 14.2% to €3,290 from €2,880 a year earlier, indicating stronger user engagement and higher per-client revenue generation. Conversely, new registered users decreased by 16.8% to 73,902 from 88,892 in Q1 2024. The company stated that this decline was anticipated due to a strategic shift from direct performance campaigns to broader brand-building initiatives. Daily trading activity per client increased by 10.5% to 2.31 trades, and copy trades rose by 13.4% to 945,047. However, total trading volume experienced a decline of 26.9%, falling to €47.3 billion from €64.7 billion in Q1 2024. It was noted that this volume figure does not fully align with a statement made by the company a week prior during an update to its SuperApp platform, where Patrascu had indicated that Q1 actions contributed to an increase in new account openings and platform activity. This report suggests the positive shift might have occurred after the first three months of 2025.

As part of its enhanced transparency initiative, NAGA announced it will begin publishing regular interim announcements on quarterly results, starting with this Q1 2025 report. The company also plans to disclose monthly key performance indicators on its website. NAGA affirmed its 2025 financial outlook, stating it remains on track to return to 2023 revenue levels through "organic growth, efficient marketing spent, and operational focus." Management anticipates a substantial improvement in EBITDA margin, expecting it to reach the mid-double-digit percentage range, supported by continued synergy realization across the group.